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Indexes up: Dow 0.35%, S&P 500 0.67%, Nasdaq 1.12%

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Nucor ( NUE ) falls after downbeat quarterly forecast

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Intel ( INTC ) jumps as Nvidia ( NVDA ) takes $5 bln stake in co

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Weekly jobless claims below estimates

(Updates with late morning trading)

By Purvi Agarwal and Sukriti Gupta

Sept 18 (Reuters) -

Wall Street's main indexes hit intraday record highs on

Thursday, a day after the U.S. central bank delivered a

quarter-point interest rate cut, while chipmaker Intel ( INTC ) climbed

after Nvidia ( NVDA ) decided to build a stake in the company.

Intel ( INTC ) jumped 29% and was set for its biggest

one-day gain since October 1987 after Nvidia ( NVDA ) said it

would invest $5 billion in the struggling U.S. chipmaker. Peer

Advanced Micro Devices ( AMD ) slipped 3.1%.

Nvidia ( NVDA ) gained 3.4%, bouncing back from losses on Wednesday,

when a report said Chinese tech firms might stop buying its

chips.

Most semiconductor stocks such as Applied Materials ( AMAT )

, Lam Research ( LRCX ) and Micron Tech ( MU ) advanced

between 4.5% and 7%, boosting a broader semiconductor

index to a record high.

The gains lifted the tech-heavy Nasdaq and the S&P 500

technology sector, up 1.6%. Three out of the 11 S&P

500 sectors were trading at all-time highs.

The small-cap Russell 2000 index gained 1.7% and

was on track for a record close, as these companies are likely

to perform better in a low interest-rate environment.

Federal Reserve Chair Jerome Powell emphasized that the

softening jobs market was a priority for the Fed after it

delivered a highly expected 25 basis point cut on Wednesday and

indicated more reductions could follow at upcoming meetings.

Investors are pricing in about 43.3 basis points in cuts by

end-2025, data compiled by LSEG showed.

"We only had one dissent ... there's more unity and

discipline at the Fed, that strengthens its independence and is

a very positive thing long-term for markets," said David Kelly,

chief global strategist at J.P. Morgan Asset Management.

At 11:37 a.m. ET, the Dow Jones Industrial Average

rose 163.03 points, or 0.35%, to 46,181.35, the S&P 500

gained 44.35 points, or 0.67%, to 6,644.70 and the Nasdaq

Composite gained 250.05 points, or 1.12%, to 22,511.38.

Conversely, the S&P 500 energy and consumer

staples were the biggest decliners, down 0.4% and 0.5%

respectively.

Data showed that the number of Americans filing new

applications for unemployment benefits

fell

last week, but the labor market has softened as both demand

for and supply of workers have diminished.

"The economy is slowing but it is slowing slowly and so

there isn't any sign of imminent recession ... the real issue

with markets today is just how much good news is priced in,"

said Kelly.

The rate cut is expected to add to Wall Street's recent

rally, boosted by monetary policy easing hopes and a revival of

AI-linked stock trading.

The three indexes have gained so far in September - a month

deemed bad for U.S. equities historically - where the S&P 500

has shed 1.4% on average since 2000, data compiled by LSEG

showed.

Among stocks, CrowdStrike ( CRWD ) gained 10% after at least

nine brokerages raised their price target on the stock.

Nucor ( NUE ) slipped 4.4% after the steel company said it

expected third-quarter profit to decrease across all its three

operating segments.

Advancing issues outnumbered decliners by a 1.57-to-1 ratio

on the NYSE and by a 2.4-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and six new

lows, while the Nasdaq Composite recorded 111 new highs and 30

new lows.